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IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments

Published November 2004. Effective 1 January 2005.

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IFRIC 2 provides guidance in applying the requirements of IAS 32 in terms of classifying financial instruments as liabilities or equity to co-operatives and similar entities.

Shares for which the member has the right to request redemption are normally liabilities, unless:

  • The entity has an unconditional right to refuse redemption
  • Local law, regulation or the entity’s governing charter can unconditionally prohibit redemption.

The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

Which version of the interpretation?

Financial Reporting Faculty members who joined the faculty prior to 1 November 2022 have premium access to the consolidated edition of IFRS and amendments through the IASB's IFRS Standards Navigator service. Please log into IFRS Standards Navigator to access electronic versions of the standards through these links.

Please be aware that as part of the changes to ICAEW faculty membership, this service will be withdrawn after 31 December 2022.

IFRSs referred to by IFRIC 2

This page was last updated 4 February 2022.